India's largest two-wheeler maker, Hero MotoCorp has said that it will be offering discounts of Rs 10,000 on motorcycles and Rs 15,000 on scooters to clear its stock of BS-IV vehicles. The company will be offering the discounts online to liquidate stock as showrooms are shut due to lockdown.
The Supreme Court on March 27 allowed the sale of BS-IV vehicles for 10 more days after the lockdown is lifted.
Hero MotoCorp is saddled with Rs 600 crore (approx) worth of BS-IV inventory. The company said it is holding at least 1.5 lakh units of BS-IV vehicles, which will either be exported after modification or used for its parts business, the Economic Times reported.
Besides, Hero MotoCorp has also relaxed its stance on the "Force Majeure" clause of deferring payments. Now, the motorcycle manufacturer will reimburse 50 per cent of the dues of large vendors from its earlier plan to pay only 25 per cent.
Estimates with Federation of Automobile Dealers Association (FADA) indicates that there were around at least 7-lakh unsold two-wheelers throughout India with different dealers. The value of these vehicles is worth Rs 3,850 crore. Around, 1.5 lakh two-wheelers have been sold out but not registered yet due to lockdown, according to apex court.
The Supreme Court in October 2018 said no BS-IV vehicle would be sold or registered in India from April 1, 2020. In 2016, the Centre announced that India would skip the BS-V norms and adopt BS-VI by 2020.
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